Loan (Éco-prêt à taux zéro)
Updated: 07.02.2019
Author: Helena Vidalic
The zero percent-interest loan for housing renovation has been introduced within the frame of the Environment Grenelle. It allows the financing of work aiming at improving the energy performance of the housing without paying a cash advance and without paying interests. One of the conditions in order to benefit from the loan is to carry out a bunch of works, consisting of at least two actions including the installation of a heating plant or of a sanitary hot water system using renewable energies (Art. 244 quater U, §2, CGI). Only one loan can be granted per housing unit. Moreover, the housing unit shall be a main residence built before 1990 (Art. 244 quater U, §1, CGI).
Eligible technologies
The supply and the installation of heating plants and of sanitary hot water systems using renewable energies, including the costs of necessary works to be undertaken with the eligible work. Moreover, the general contractor fees as well as the project owner's insurance costs are also eligible.
| Biomass | Wood fuelled heating plants with a capacity below 300 kW are eligible, provided they meet the energy performance and emission thresholds as defined by the fifth rate of the standard NF EN 303.5 (Art. 7, Arrêté du 30 mars 2009). Wood-burning stoves, wood-fired hearths as well as fireplace inserts are also eligible, provided they meet the following requirements listed in article 18 bis, annex IV of the tax code (Art 18 bis, Annex IV of the Tax Code; Art. 7, Arrêté du 30 mars 2009): - The installation shall have an energetic performance of at least 70%.
- The average concentration of carbon monoxide shall be less than or equal to 0,3% (with 13% O2).
- The particle emission of the installation shall be less than or equal to 90 mg/Nm³ (with 13% O2).
- The environmental performance index of the installation shall be less than or equal to 1.
Moreover, the company undertaking the installation of the biomass heating systems shall hold a quality label delivered by an accreditated certification body. This condition applies for expenses in renewable energy devices made from 1 January 2015 (Art. 7, Arrêté du 30 mars 2009). |
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| Solar thermal energy | Solar installations for the production of heat are eligible, provided they meet several requirements, including the following (Art 18 bis, Annex IV of the Tax Code; Art. 7, Arrêté du 30 mars 2009): - The installation shall be certified CSTBât or Solar Keymark or equivalent.
- The seasonal energy efficiency of the installation shall correspond to at least 90%.
Sanitary hot water installations are also eligible, provided they meet following requirements (Art 18 bis, Annex IV of the Tax Code; Art. 7, Arrêté du 30 mars 2009): - The installation shall be certified CSTBât or Solar Keymark or equivalent.
- The energy efficiency of the water heating system shall correspond to at least 65% to 85%, depending on the installation size.
Moreover, the company undertaking the installation of the sanitary hot water system shall hold a quality label delivered by an accreditated certification body. This condition applies for expenses in renewable energy devices made from 1 January 2015 (Art. 8, Arrêté du 30 mars 2009). |
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Amount
The amount of the zero percent-interest loan equals the amount of the costs of the works undertaken and shall not exceed (Art. R. 319-5, CCH):
- € 20,000 if two categories of works are carried out (Art. R. 319-21, CCH), with reimbursement within 10 years (Art. 244 quater U, CGI).
- € 30,000 if at least three categories of works are carried out (Art. R. 319-21, CCH), with reimbursement within 15 years (Art. 244 quater U, CGI).
Addressees
Homeowners occupying or renting their housing as well as BGB companies (partnership organised under the Civil Code) not subjected to corporation tax are eligible to the zero percent- interest rate loan (Art. 244 quater U, §1).
Procedure
Process flow | The procedure for the grant of a zero percent-interest loan is the same as for any loan. The eligible person shall bring to the credit institution the necessary documents including a detailed quote of the works to be undertaken as well as the latest tax assessment (Art. R. 319-19, CCH). Only the credit institutions which have signed a convention with the French government are allowed to propose the zero percent-interest loan. |
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Distribution of costs
| State | The costs of the absence of interests for the credit institutions are borne by the French State (Art. R. 319-9, CCH). |
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France
